In Re Estate of the Assignment for the Benefit of Creditors of May

OPINION REGARDING MOTION TO DISMISS CHAPTER 11 CASE

THOMAS J. TUCKER, Bankruptcy Judge.

I. Introduction

This voluntary Chapter 11 case was filed by a liquidating trust. That trust was created under state law, by an assignment for the benefit of creditors. The assignment was executed by an individual who allegedly engaged in a fraudulent Ponzi scheme, 1 involving perhaps as much as $200-$300 million and scores of victims. Soon after the assignment was made, the assignee filed this voluntary Chapter 11 case on behalf of the trust, with the stated purpose of pursuing a plan of liquidation.

One of…